Debt Redemption and Reserve Accumulation
---- Acknowledgments ----
The paper does not reflect the views of the Brazilian Ministry of Finance or the National Bureau of Economic Research. We thank for their valuable comments and suggestions Emine Boz, Nan Li, two anonymous referees, Enrique Alberola-Ila, Javier Bianchi, Roberto Chang, Menzie Chinn, Charles Engel, Jeffrey Frankel, Marcio Garcia, Galina Hale, Ricardo Hausmann, Lakshmi Iyer, Carmen Reinhart, Jesse Schreger, Eric Werker, and participants in seminars at the Kennedy School of Government, Harvard Business School, Fundacão Getulio Vargas, University of São Paulo, University of Wisconsin-Madison, and participants at the LACEA, and the Brazilian Central Bank Inflation Targeting Conference. Hayley Pallan and Haviland Sheldahl-Thomason provided great research assistance. Support from Harvard Business School research budget acknowledged.